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Board reduces Westin Ballston assessment after parties clash over PIP and cap rates
Summary
The BOE reduced the Westin Ballston assessment after appellant argued a $30M outstanding PIP and county projections overstated NOI; the board adopted a revised value of $85,196,200 by a 4–1 vote.
The Arlington County Board of Equalization trimmed the assessed value for the Westin Ballston to $85,196,200 following testimony from the appellant and the county about outstanding required capital work and differing approaches to NOI and cap rates.
Appellant counsel Mark Rogers and the presenting appellant (Mr. Harmon) urged the board to account for a roughly $30 million Property Improvement Plan (PIP) outstanding as of the valuation date and to either increase the cap rate or take a below‑the‑line deduction to reflect the cost burden a buyer would face. The appellant noted that the county's per‑key revision — about $262,000 per key on the subject property — appeared high compared with a recent Westin sale in the D.C. CBD at roughly $224,000 per key, and said the county projection was $415,000 higher than reported 2025 NOI.
The county replied that the property's multiyear trend and local hotel performance supported the revision; assessors also noted the PIP had appeared in documents as far back as 2016 and that owners frequently invest in FF&E and other replacements that then produce a rebound year.
After the parties' presentations and tests by board members, a motion to adopt an adjusted assessment that reflected increased modeled expenses and other revisions carried by a 4–1 vote, with Mr. Mendez recorded as the lone dissenter. The board reduced the assessment to $85,196,200.
Why it matters: the decision shows the BOE will consider post‑date and property‑specific capital needs when weighing income‑approach assumptions; large PIPs or renovation obligations can materially affect value and tax basis.
The Board moved on to other matters after recording the vote.
